Divorce and Financial Decision Making

American families are stressed to the limit. Job insecurity, family pressures, and personal conflicts can make things worse. Many times, spouses can work through the difficulties, but sometimes the result is divorce. At minimum, divorce disrupts personal circumstances. But, in worse cases, inappropriate financial decisions are made, both before the divorce and after, that hurt the people involved, including any children of the marriage.

In the same way that you need a lawyer to help you through the legal aspects of divorce, it is absolutely essential to engage in the services of a trust-worthy financial consultant to help you through the financial side.

A qualified financial advisor can provide pre- and post-divorce guidance for critical issues such as:

• dividing the marital assets
• determining which investments are best suited for your new situation
• deciding what to do with existing and future debt
• making cash flow projections with and without keeping the house

Unfortunately, the emotions that pervade divorce situations frequently cause people to make financial blunders that have long-lasting negative effects on their lives and the lives of their children. Obtaining professional financial advice as early as possible in the divorce process can help you avoid major pitfalls.

A fee-only Certified Financial Planner has both the independence and the credentials that are necessary to look out for your financial best interest. (More information about this is available on our FAQs page.) If you do not wish to find one on your own, ask your lawyer to recommend one. Few financial advisors are both certified and fee-only, so make sure you check their qualifications and know exactly how they are paid before retaining their services.

More education is available

Contact us to discuss your specific situation.